FINWIRES · TerminalLIVE
FINWIRES

Oil, Earnings, Trump-Xi Outlooks Roil Asian Stock Markets

By

Asian stock markets churned on Tuesday, as investors mulled the earnings season, rising crude prices, and the pending summit between US President Donald Trump and China leader Xi Jinping.

Brent crude oil struck $107.67 a barrel, up 3.3% during Asian trading hours, as Persian Gulf turmoils continued to rattle oil markets.

Tokyo finished in the green, while Hong Kong and Shanghai fell back. Other regional exchanges were similarly mixed.

In Japan, the Nikkei 225 opened evenly, wobbled, but finished up 0.5% on strength in tech issues and a generally solid earnings season.

The benchmark Nikkei 225 rose 324.69 to 62,742.57, as gaining issues outnumbered losers 124 to 99.

Leading the upside was Furukawa Electric, gaining 16.1% after reporting earnings, while social-media platform LY Corporation declined 8.6%.

In economic news, Japan's leading index of business conditions rose to 114.5 in March from 113.2 in February, striking the highest level since April 2022, reported the Cabinet Office.

In Hong Kong, the Hang Seng Index opened steadily but declined to those close, finishing off 0.2% as investors awaited clarity ahead of the Trump-Xi meeting.

The broad gauge Hang Seng fell 58.93 to 26,347.91 as losing issues outnumbered gainers 48 to 40. The Hang Seng TECH Index lost 0.7% on the day, while the Mainland Properties Index fell 0.5%.

Leading the upside was Xinyi Glass, gaining 4.5%, while computer-maker Lenovo declined 3.4%.

On the mainland, the Shanghai Composite fell 0.3% to 4,214.49.

On the other regional exchanges, the South Korean KOSPI fell 2.3%; the Taiwan TWSE inclined 0.3%; the Australian ASX 200 declined 0.4%; the Singapore Straits Times Index rose 0.1%, and the Thai Set declined 0.4%. In late trading in Mumbai, the Sensex was down 1.9%.

The MSCI All Country Asia Pacific Index fell 0.7% on the day.

Related Articles

International

Oil, Middle East Outlooks Undercut European Bourses Midday

European bourses tracked moderately lower midday Tuesday as crude prices rose after US President Donald Trump and Iranian officials overnight mutually ruled out a peace deal.The Strait of Hormuz, the vital waterway for oil tankers, remains largely closed to traffic.Front-month North Sea Brent crude-oil futures traded up 3.1%, at $107.45 a barrel in midday action.Food and oil stocks led modest gains on continental trading floors, while bank, tech and property shares lagged.Investors also eyed Wall Street futures flashing red amid largely lower closes overnight on Asian exchanges.In economic news, Germany's economic sentiment index came in at negative 10.2 in May versus negative 17.2 in April, the Centre for European Economic Research reported. "There is cautious hope for a potential recovery in the second half of 2026, provided that the Middle East conflict eases," ZEW said.The pan-continental Stoxx Europe 600 Index was off 0.7% red% mid-session.The Stoxx Europe 600 Technology Index was down 1.5%, and the Stoxx 600 Banks Index lost 1.7%.The Stoxx Europe 600 Oil and Gas Index gained 0.4%, and the Stoxx 600 Europe Food and Beverage Index edged 0.2% higher.The REITE, a European REIT index, fell 1%.On the national market indexes, Germany's DAX was down 0.9%, and the FTSE 100 in London lost 0.4%. The CAC 40 in Paris was down 0.5%, and Spain's IBEX 35 eased 0.9%.Yields on benchmark 10-year German bonds were higher, near 3.09%.The Euro Stoxx 50 volatility index was up 3.9% at 22.87, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

$^SXXP
International

India's Retail Inflation Picks Up in April

India's retail inflation edged up in April, with the Consumer Price Index (CPI) rising 3.48% in April, up from 3.40% in March, according to data released by the Ministry of Statistics and Program Implementation on Tuesday.Rural and urban inflation stood at 3.74% and 3.16%, respectively, in April.Food inflation, measured by the Consumer Food Price Index, climbed to 4.20% in April from 3.87% in March. Rural food inflation was recorded at 4.26%, while urban food inflation came in at 4.10%.Housing inflation for April was provisionally at 2.15%, with rural housing inflation at 2.65% and urban at 1.96%, data showed.

$^BSE$^NSEI
International

US Dollar Rises Early Tuesday Ahead of April Consumer Prices

The US dollar rose against its major trading partners early Tuesday ahead of the release of April consumer price data at 8:30 am ET.Overall CPI is expected to rise by 0.6%, with core prices up 0.3%. The year-over-year rate is forecast to accelerate to 3.7% from 3.3%, and the core rate to 2.7% from 2.6%.Weekly Redbook same-store sales are due to be released at 8:55 am ET, followed by an appearance by Chicago Federal Reserve President Austan Goolsbee at 1:00 pm ET and the US Treasury's monthly budget statement for April at 2:00 pm ET.Earlier Tuesday, the NFIB reported that small business sentiment ticked up only slightly in April, noting that inflation concerns remain and that the economic outlook was less positive than in the previous month.A quick summary of foreign exchange activity heading into Tuesday:EUR/USD fell to 1.1744 from 1.1777 at the Monday US close and 1.1772 at the same time Monday morning. Eurozone economic sentiment improved in May but still indicated more pessimism than optimism. The next European Central Bank meeting is scheduled for June 11.GBP/USD fell to 1.3537 from 1.3618 at the Monday US close and 1.3597 at the same time Monday morning. There are no UK data on Tuesday's schedule, but Bank of England Deputy Governor Sam Woods is due to speak at 1:30 pm ET. The next Bank of England meeting is scheduled for June 18.USD/JPY rose to 157.5610 from 157.2476 at the Monday US close and 157.1355 at the same time Monday morning. Japanese household spending declined in March while the Japanese leading index improved in the same month, according to data released overnight. The next Bank of Japan meeting is scheduled for June 15-16.USD/CAD rose to 1.3710 from 1.3678 at the Monday US close and 1.3662 at the same time Monday morning. There are no Canadian data on Tuesday's schedule. The next Bank of Canada meeting is scheduled for June 10.

$EUR/USD$GBP/USD$USD/CAD$USD/JPY